Go First’s attempts to restart keep getting pushed around, even as the airline has been grounded for over three months. The airline is fighting cases on multiple fronts. Still, one of the fundamental tenets of its resurrection is the fact that they want to hold on to 30 aircraft that it had leased but could not pay for the lease with hardship hit, and still wants to hold on to the aircraft while the lessors wish to to take away their equipment and possibly place it with another airline. To this effect, the Indian bankruptcy court has granted them rights to use the planes, but the High Court of Delhi has taken the lessors’ side.

Supreme Court of India denies Go First appeal against lessors.

The Delhi High Court had said that the lessors and its employees or agents should be permitted by the Directorate General of Civil Aviation (DGCA) and the appropriate airport authorities to access the airport where their aircraft are parked and to inspect them. Later on, on the appeal of Go First, a court permitted Go First to maintain the aircraft, which are currently on lease, subject to a monthly inspection by the lessors.

With contradictory judgements, both sides went to the Supreme Court of India to seek a favourable judgement. As per the Delhi High Court, the lessors were granted the following rights:

• Access to the airports where their aircraft are parked
• Inspection rights over their aircraft once a month
• Prohibited Go First from removing any parts from the lessor’s aircraft without the written permission of the Lessor

Go First had argued that they should have access and the rights to maintain the 30 aircraft (about half their fleet), and they asked the Supreme Court to overturn the said order from the Delhi High Court. However, the Supreme Court refused to admit the appeal and said,

The lessors own the aircraft, it is their aircraft. We will not entertain this appeal (filed by Go First RP). Since proceedings are pending before the Delhi High Court, where petitions are being argued on a day-to-day basis. We are not entertaining this at the present stage. Let the jurisdictional issues also be addressed before the single judge.

The short and crisp judgement disposing off Go First’s appeal is enclosed.

Bottomline

There seems to be no end to the long-drawn battle for Go First to return to the skies. Instead of taking the lessors into confidence and trying and renegotiate their deal, they went the voluntary bankruptcy way and are trying to fight the lessors in the courts to hold on to aircraft that are not theirs. The rentals have yet to be regularised either. So, in the current circumstances, how quickly the airline will take to the skies remains to be seen.

What do you make of this situation, and who is right?

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